Engineering Board Exam Reviewer · ECE · medium
In which type of contract does the CONTRACTOR bear the greatest risk of cost overruns?
- Cost-plus-fixed-fee
- Cost-plus-percentage-of-cost
- Lump-sum (fixed-price)
- Time-and-materials
Answer
C. Lump-sum (fixed-price)
Solution
The contractor must complete the work for the agreed price regardless of actual cost.
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